Profits Up, People's Plans A Stock Split

The top executive of People's Bank in Bridgeport had lots of good news for the 300 shareholders who packed its annual meeting at bank headquarters Thursday morning.

David E. A. Carson -- the president, chief executive officer and chairman -- said the bank's first- quarter profits were up; its board of directors declared a 3-for-2 stock split; and the cash dividend will be increased.

Carson credited bank employees and the integration of technology for People's success.

``It takes a lot of good people to make a service organization work,'' Carson said. ``They have to focus on what we are doing, they have to train, and they have to enjoy our customers.''

The first quarter was a good one for the bank, on the heels of a good year in 1996.

For the quarter that ended March 31, the bank posted a profit of $22 million, or 54 cents a share, up from $20.8 million, or 51 cents a share, a year earlier.

Carson also told shareholders that the cash dividend on People's stock will rise 14 percent, to 25 cents a share, from 22 cents a share.

Under the stock split, the bank's shareholders will receive a half- share for every share they hold.

Both the dividend and stock split are payable May 15 to shareholders of record as of May 1. The dividend will be paid on pre-split shares.

To accommodate the split, the total outstanding and issued shares of People's Bank will rise 50 percent. The bank's 40.7 million shares as of March 31 will be split into 61.1 million shares. This follows shareholder approval to increase People's authorized shares to 100 million, from 60 million.

Carson described the stock split and dividend increase as ``rewards'' for shareholders, generated by the bank's strong financial results.

He said the stock split is a way to encourage more ownership of People's by small investors.

The bank said that People's Mutual Holdings, which owns 24.3 million shares of People's Bank stock, will accept $225,000 in dividends, representing payment on just 4 percent of its shares. It will hold 36.45 million shares after the split.

Meanwhile, in 1996 the bank expanded its supermarket branch network at Super Stop & Shops throughout the state. It also began marketing its credit cards in the United Kingdom last year. Carson said both programs are on schedule.

As of March 31, the bank had 26 offices in Super Stop & Shops, with a total of $262 million in deposits. And the supermarket branches are generating about $220,000 in new deposits each week week, in each store. And People's Bank has $69 million in credit card receivables in the UK at the quarter's end.